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Revisiting The Electricity Question In Nigeria

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The question as to whether the Nigeria’s tech ecosystem can truly develop without steady power supply has always been agitating my mind.

This question keeps coming up because of the epileptic power supply that has consistently been the lot of the citizens of this country for way over 5 decades now. The epileptic power supply has constantly left most of our small, medium and large scale businesses in Nigeria in dire straits. This is because they power their businesses with generators which run on fuel and this shoots up the operating/running expenses of these businesses.

It is no longer news that many industries in Nigeria have either closed shop and relocated to other countries that have relatively stable electricity or disengage a number of their staff and increased the work load of those remaining in a bid to reduce operating/running cost.

This is happening in a country where we already have a very high rate of unemployment. The news gets worse when the reality stares us in the face that, unless the government, through the NERC and the Discos, Gencos and the Transmission companies gets their acts together and cooperate, coordinate and synergize to give us the much required stable electricity supply, more businesses are likely to die, be irrespective of the field of endeavour.

It is worthy to note that, without steady power supply, there simply cannot be any significant technological advancement or innovation and in the same vein, no section of the power ecosystem, (generation, transmission, distribution, billing, the regulator or what have you), can work effectively and efficiently without inputting modern technology. They are all partners in progress.

In many climes, people in government have come to recognize that stable electricity supply is the fulcrum on which many businesses depend, to enable them deliver optimally at relatively cheaper prices. Electricity is also seen as the chief driver of technological innovations that has given birth to the Internet of Things.

This has now turned the universe into a global village through internet connectivity. The Internet of Things is set to take the world by the storm in the next two or three years’ time, when your household gadgets, such as your refrigerator, electronic doors and gates, Television, Microwaves, etc., will be interconnected.

Without stable electricity, I do not see how we will be able to cope in Nigeria in this regards as connectivity is dependent on the availability of electricity supply.

Today, within the twinkling of an eye, you can transact and close business deals with anyone, anywhere in the world, without leaving the comfort of your home through an internet-connected computer device, powered by electricity.

Technology and its variants of innovations, of which electricity is a major one, I have always maintained, has come to make our daily living a lot easier.

There is no doubt that the high unemployment rate we are presently facing in Nigeria can be drastically reduced with relatively stable supply of electricity.

Many people will find their employment bearing in what is usually called the blue collar job sector of the economy, which is capable of accommodating millions of employable Nigerians. Name it; Welding workshops, Barbing saloons, Hair dressing saloons, Internet Café, Fashion designers, Cold room operators, etc., will all have stable jobs and move away from riding bikes, popularly referred to as Okada, with grave implications to their health, if they have access to stable electricity to run their businesses seamlessly.

Also, and importantly too, manufacturing will once again boom in Nigeria as factories will be able to run their machines at cheaper electricity rates compared to the exorbitant cost of running them presently on diesel generators, if the issue of electricity is fixed. This means that there will be a reduction in the cost of production.

A reduction in the cost of production will drive the prices of produced goods down, thus, making them affordable to the average Nigerian.

Further benefits of fixing the electricity issue in Nigeria is that, as reduction in production costs drives down prices, our products will be able to compete for export, especially, in our immediate African market.

This can, indeed, be the beginning of Nigeria earning serious foreign exchange from exports. Exports earnings can improve the strength of the Naira against stronger currencies like the Dollar and save us from the present foreign exchange imbroglio we find ourselves. Nigerians can then start to breathe a sigh of relieve.

One of the reasons adduced for the increase in electricity tariff is that the Disco’s need to gather more funds to invest in old equipment. One is tempted to ask; what did the Disco’s thought they were buying into when they were bidding for the aspect of PHCN which they bought?

Did they inspect the equipment they were buying at all? Did they price down the old equipment they were buying into when they bought, knowing that they have to invest in better equipment? Why should it now be the electricity consumers that should indirectly be funding the Fixed Asset side of the Balance Sheet of the Disco’s by financing their equipment purchase through the increase in tariffs? All these questions are begging for answers.

The truth is that no nation can be truly economically viable if its electricity sector is in the kind of crisis that ours is in Nigeria. There is the need to really deregulate the electricity sector in Nigeria instead of removing it from the government’s bureaucratic shackles and placing it on the laps of investors with oligarchic tendencies.

The issue of alternative sources of electricity should also not be discountenanced in seeking to solve the electricity crisis in Nigeria. Technology has provided various other options, such as wind, solar and many more. The government should look at each community and see how best they can be helped to benefit from these alternative sources of electricity, thus, by-passing the Discos.

We expect to see positive changes in the direction of improving the supply of electricity with the supply of prepaid meters to every consumer of electricity in the nearest future, otherwise, our Tech ecosystem and other businesses will keep crawling.

CFA is the Founder, www.CFAtech.ng & Co-producer/Presenter,Tech Trends on Channels Television

 

 


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InfraCredit, AMDA Sign Partnership to Unlock Local Financing for Africa’s Mini-grid Sector

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InfraCredit, a specialised infrastructure credit guarantee institution, has entered into a strategic partnership with the Africa Minigrid Developers Association (AMDA) to boost access to long-term local currency financing for mini-grid and distributed renewable energy (DRE) projects across Africa.

The agreement aims to strengthen market development and address long-standing financing barriers in the mini-grid sector, especially in Nigeria and other underserved African markets.

The collaboration is aligned with InfraCredit’s Clean Energy Funding Programme (CEFP), which offers credit enhancement, due diligence support, and technical assistance to renewable energy developers.

“With an estimated 86 million Nigerians, alongside hundreds of millions across Africa—still living without electricity, bridging this energy access gap demands a pipeline of investment-ready, well-prepared projects that can unlock scalable capital and accelerate financial close,” said Chinua Azubike, CEO of InfraCredit.

“This partnership creates a practical pathway to scale the impact of our Clean Energy Funding Programme by equipping more developers to structure commercially viable mini-grid and DRE projects that qualify for long-term local currency finance,” Azubike added.

Through the agreement, both InfraCredit and AMDA will work together to facilitate technical assistance, share toolkits, and deploy credit modelling frameworks, including InfraCredit’s Distributed Renewable Energy Lending Toolkit (DRELT) and DRE Credit Rating Model. These tools aim to enhance the bankability of projects and improve developers’ ability to secure patient capital in local currency.

AMDA, which represents mini-grid developers operating in over 20 African countries, brings deep sector expertise and a strong network of DRE operators to the partnership.

According to Lamide Niyi-Afuye, CEO of AMDA, the collaboration addresses one of the most persistent challenges in the sector.

“We are pleased to collaborate with InfraCredit to address one of the most persistent barriers in the minigrid sector, access to affordable, long-term local currency finance,” said Niyi-Afuye.

“By aligning AMDA’s advocacy and technical support efforts with InfraCredit’s proven models and tools, we aim to accelerate the deployment of resilient, decentralised energy solutions that deliver tangible socioeconomic benefits in Africa. We view this partnership as a blueprint that will be used beyond borders, paving the way for broader regional impact,” he added.

The partnership will also support the development of transaction-ready pipelines, capacity-building initiatives, and investor-developer forums aimed at improving market transparency and accelerating the roll-out of commercially viable mini-grids.

By facilitating access to domestic blended finance and strengthening project preparation, the partnership hopes to unlock greater private sector participation, mobilise local capital, and expand clean energy access across unserved and underserved communities in Africa.


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Transcorp Power Posts Strong Half-Year Profit, Declares ₦11.25Bn Dividend

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Transcorp Power Plc, one of Nigeria’s foremost electricity generating companies and a key subsidiary of Transnational Corporation Plc, has reported a robust financial performance for the half-year ended June 30, 2025.

Transnational Corporation Plc

In a statement issued on Sunday in Delta, the company disclosed a significant revenue growth of 52 per cent year-on-year, rising to ₦205.8 billion from ₦135.4 billion recorded in the corresponding period of 2024.

The company said that its gross profit surged to ₦77.6 billion, with a gross margin of 23 per cent, while profit before tax grew to ₦58.7 billion, representing a 15 per cent increase compared to ₦51 billion in H1 2024.

It attributed the improved performance to increased generation capacity, strategic investment in infrastructure, and enhanced operational efficiency.

Speaking on the development, the Chairman of Transcorp Power, Mr Emmanuel Nnorom, said the half-year results reflect the company’s commitment to disciplined cost management and sustainable value creation.

“Our resilient performance despite economic headwinds reaffirms investor confidence in our long-term prospects,” he said.

The company also declared an interim dividend of ₦11.25 billion, amounting to ₦1.50 for every 50 kobo ordinary share, subject to withholding tax.

Commenting on the operational gains, the Managing Director and Chief Executive Officer, Mr Peter Ikenga, said Transcorp Power increased its generation capacity by 100MW within the period.

“We remain focused on powering Nigeria and Africa, as we build on our momentum into the second half of the year,” Ikenga said.

Transcorp Power is a listed entity on the Nigerian Exchange and operates as one of the country’s leading power generation companies, with a track record of driving economic growth through reliable electricity supply.


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Lawyers Drags NLS to Court for Alleged Election Fraud, Data Violation

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Two Nigerian lawyers have sued promoters of the Nigerian Law Society (NLS) over allegations of electoral fraud and unlawful use of personal data.

Lawyers Drags NLS to Court for Alleged Election Fraud, Data Violation

The legal actions follow the recent election conducted by the NLS, a breakaway association formed as an alternative to the Nigerian Bar Association (NBA), to elect its national officers.

In one of the suits, marked FHC/ABJ/05/1506/2025 and filed before the Federal High Court in Abuja, a lawyer, Timothy Tersugh Ahua, is challenging the conduct of the election and the legitimacy of the electoral process.

Ahua named several NLS promoters, including prominent lawyers, as defendants.

They include Senior Advocates, Chief Mela Audu Nunghe, Dr. Ugoji Eze, Secretary of the NLS Electoral Committee, and Chief Bolaji, Chairman of the NLS.

Others named in the suit are Ferguson Chioma Blessing, Chief Emeka Ichoku, and Tejumola Adigun.

Citing provisions of the Federal High Court Civil Procedure Rules, Ahua is asking the court to declare that the NLS electoral process violated its constitution.

He is seeking a declaration that all unopposed candidates, including himself, be declared elected, as published by Dr. Tonye Clinton Jaja, the alternate Chairman of the NLS Electoral Committee.

Ahua claims he was duly nominated for the position of Secretary General but was unjustly excluded, accusing the defendants of hand-picking candidates in breach of the rules.

He further alleged that the exclusion caused him financial loss, reputational damage, and personal hardship, urging the court to correct what he described as a grave injustice.

In a separate suit before the Federal High Court in Abeokuta, another lawyer, Oluwadare Thomas, sued Chief Mela Nunghe, a Senior Advocate of Nigeria, Dr. Ugoji Eze, the Corporate Affairs Commission (CAC), the National Information Technology Development Agency (NITDA), and the Nigerian Data Protection Commission (NDPC), over alleged violation of his data privacy rights.

Thomas is asking the court to determine whether the use and publication of his personal data by NLS election officials without his consent amounts to a breach of Section 37 of the 1999 Constitution and the Nigeria Data Protection Act, 2023.

He also wants the court to consider whether the use of the NLS name for the election, despite a CAC notice and a pending suit, constitutes contempt of court and abuse of legal process.

He is seeking several declaratory and injunctive reliefs, including a court order restraining the continued use of his personal data and an order compelling NITDA and NDPC to investigate and sanction the respondents.

Thomas is also demanding N50m in compensation for the alleged unlawful processing and exposure of his personal information.


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